EU Banking Regulator Takes Over Key Oversight of Circle’s USDC Stablecoin

The European Banking Authority (EBA) classified Circle's USDC as a significant e-money token under the Markets in Crypto-Assets Regulation (MiCA) today (Wednesday). It is the first of the 45 e-money tokens notified in the European Union to receive the label.

From November 12, the EBA will directly supervise USDC's own funds, reserve of assets, liquidity and recovery and redemption plans. Those tasks move from France's Prudential Control and Resolution Authority (ACPR), which licensed Circle as an e-money institution in July 2024.

London's trading industry is coming home!

The decision hands an EU-level supervisor the reserves behind a token Circle said had $73.3 billion in circulation worldwide at the end of June, up 19% from a year earlier.

The largest dollar stablecoin is absent from regulated EU venues. Tether did not seek MiCA authorization for USDT, which major regulated platforms delisted before the July 1 deadline.

What It Means for Platforms Listing USDC

From November, exchanges and brokers that offer USDC in the EU will list a token whose reserves are supervised by the EBA, rather than by a national authority.

Kraken expanded support for USDC and EURC in September 2025 to cut conversion fees for its users.

Binance went further. In September, it bought a $100 million stake in Circle alongside a five-year USDC agreement under which Circle pays the exchange monthly incentives tied to USDC balances.

USDC supply has moved both ways this year. Circulation stood at $77.0 billion at the end of March before falling to $73.3 billion by the end of June, according to Circle's quarterly results.

Circle cited Visa Onchain Analytics data putting USDC at 63% of stablecoin transaction volume in the first quarter.

Who Supervises What From November 12

USDC will fall under the dual supervision MiCA sets for significant tokens. The ACPR keeps governance, qualifying holdings, fit-and-proper assessments, outsourcing and conflicts of interest.

The EBA said it and the ACPR would work closely to ensure a smooth transition. The authority reassesses every year whether a token still meets the criteria for significance.

Under MiCA, a token is significant when it meets at least three of seven criteria. They include more than 10 million holders, an issued value or reserve above EUR 5 billion, and more than 2.5 million transactions worth over EUR 500 million a day.

The other criteria cover the issuer's international reach, its links to the financial system and whether it issues other tokens while providing crypto services.

The EBA did not say which criteria USDC met.

Circle's euro token, EURC, is issued under the same French license. The decision applies only to USDC.

A Token Issued on Both Sides of the Atlantic

USDC is issued in the EU by Circle Internet Financial Europe SAS and in the US by Circle Internet Financial, LLC, the EBA noted.

The EBA has a memorandum of understanding with the New York State Department of Financial Services (NYDFS) on cross-border stablecoin supervision. It announced the agreement on June 2, saying it covers issuers it supervises directly under MiCA.

The agreement provides for information exchange, mutual assistance in ongoing supervision and coordination in a crisis. The EBA said it had assessed the New York regulator's confidentiality rules as equivalent to those under MiCA, a condition for sharing confidential information.

In the US, the Office of the Comptroller of the Currency (OCC) gave Circle final approval in July for a national trust bank, which will start with custody for Circle and its affiliates.

A stablecoin issued in one jurisdiction and used in another still falls under separate US, UK and EU regimes, Hedera Chief Policy Officer Nilmini Rubin wrote in a FinanceMagnates.com column in August.